Slowing house price growth is helping younger buyers on to the ladder but home owners are grabbing the best mortgage rates, surveyors claim.

Data from chartered surveyors e.surv estimates there were 65,770 mortgage approvals in July, down 1% on June but up 0.8% annually.

The surveyor claims small deposit borrowers – typically young first-time buyers with deposits of up to 15%– made up 27.9% of the market, which is the same as the previous month but higher than the 27.7% recorded in May.

Large deposit borrowers – those putting down up to 40% – saw the biggest increase, with their share of approvals growing from 24.7% to 26.6% between June and July, which e.surv said was mainly made up of remortgages.

The remaining 45.6% went to those with mid-market deposits of up to 25%.

The highest proportion of small deposit mortgage approvals was in Yorkshire at 35.4%, while London had the smallest at 17.7% and the highest level of large deposit home loans at 33.6%.

Richard Sexton, director at e.surv, said: “Despite a scorching hot July across much of the country, remortgage activity remained strong during the month.

“The number of small-deposit buyers securing a mortgage in July remained similar to the high levels recorded in June, as some house hunters shunned the beach and headed to the estate agent.

“Current mortgage rates remain at a historically low level and this certainly appears to be tempting some new borrowers into the market.

“For those lucky enough to already own a home, these rates have encouraged many existing home owners to remortgage at a low rate and give themselves security over their payments in the coming years.

“These rates, coupled with a general slowdown in house price growth, are helping more young buyers, who are often strapped for cash, on to the ladder.

“Despite this, the market for purchase mortgages remains largely flat.”